SKF is looking to the deal to add velocity-control products and specialty services as well as to expand its footprint in the U.S. The company said it will offer $35.50 per share, 22% above Kaydon's closing price Wednesday in New York. The $1.25 billion purchase price includes $95 million of net debt.

The Stockholm-based buyer said the price amounts to 12.7 times Kaydon's adjusted Ebitda for the 12 months through June 29. SKF expects the deal to be accretive to earnings from year one. The deal is due to close in the fourth quarter.

SKF shares rose 2.1% in Stockholm Thursday morning to trade at 182.20 kronor ($27.45), a 39% gain over the past year. The buyer plans to finance the deal with existing cash and credit lines; an SKF spokewoman said the company will arrange long-term financing after the deal closes.

Thursday's agreement comes a little more than a year and a half after SKF agreed to buy New York-based General Bearing for about $125 million in cash, and caps a busy decade of acquisitions in the U.S. and other markets for CEO Tom Johnstone. In a statement, he said SKF had been following the development of Kaydon for some time.

"They have a strong product portfolio, strong management and a solid financial group, and I am delighted that they will soon be part of the SKF group," he said.

He added: "In particular this acquisition, combined with our other activities, investments and acquisitions in the last few years, shows our strong commitment to the North American market."

Kaydon CEO James O'Leary said that the transaction represents an excellent strategic fit "that will allow our market-leading businesses to accelerate their growth strategies by joining forces with SKF, a global industry leader."

Kaydon, which gets 62% of its sales in North America, posted 2012 sales of $475 million and employs more than 21,000 people. SKF had 2012 sales of Skr64.575 billion and 46,775 employees. It has around 140 manufacturing sites in 28 countries, including a Cleveland plant it opened last year.